Refunds for Omitted "Basic Deduction for Stock Capital Gains"... NTS to Refund 2.1 Billion Won to 4,687 Taxpayers

National Tax Service reviews stock capital gains tax returns for tax years 2021-2025
Refunds issued after applying omitted basic deduction of 2.5 million won

Taxpayer A filed a preliminary return for 6 million won in capital gains from stock transfers for 2024 at a tax rate of 30%, but paid 1.8 million won in tax after omitting the basic deduction. Applying the 2.5 million won basic deduction reduces the tax to 1.05 million won (3.5 million won × 30%). Including 40,000 won in interest on the refund, Taxpayer A received a total refund of 790,000 won.

The National Tax Service said it refunded 2.1 billion won on November 3 to 4,687 taxpayers who had overpaid taxes after omitting the basic deduction when preparing their returns. The refunds were for tax years 2021 through 2025, and amounted to up to 790,000 won per person.

The basic deduction for capital gains is an item deductible under tax law when calculating the tax base. Even when taxpayers had not separately applied for a refund, the National Tax Service directly reviewed their stock capital gains tax returns, applied the omitted basic deduction of 2.5 million won, and issued refunds.

A National Tax Service official said, "Filing stock capital gains tax returns can be complicated for taxpayers because they must file preliminary returns every six months for domestic stocks and final returns for overseas stocks and the netting of gains and losses, among other cases. We found many cases in which taxpayers either did not know that the basic deduction applied to stock capital gains tax returns or omitted it by mistake, resulting in overpayment, so we proceeded with the refunds."

Notices of national tax refunds are sent to eligible recipients by mobile message or mail. Recipients can check whether they have a refund and its amount under "Refund Details" on Hometax (Sontax), and can also view refunds already paid and those not yet received. Notices are sent by mobile message to recipients whose refunds are paid into a bank account and by mail to those receiving cash.

If a refund account has already been registered with the National Tax Service, the refund is deposited into that account without a separate payment request. If no account has been registered and the recipient wants the refund deposited into an account, they can select "Request Payment" under "Refund Details" on Hometax, enter an account in their own name, and submit the request.

Those who have difficulty receiving their refund by bank transfer can collect it in cash at a post office by presenting the national tax refund notice and identification. Recipients eligible for cash payment who have no refund account registered can reprint the national tax refund notice on Hometax.

This content was produced with the assistance of AI translation services.